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14 High Yield Stocks With Low Debt Ratios That Are Still Cheap In Terms Of Coming Growth

Stocks With Low PEG Ratios And Low Debt To Equity Researched By Dividend Yield - Stock, Capital, Investment. Sometimes, people only watch at the single P/E ratio which measures the price valuation of a company in relation to its earnings. A high P/E leads similar to a "not buy" decision. But high P/E ratios also express the growth of the company. A stock that doubles earnings every three years is it worth to pay 20 times of earnings. The price-earnings to growth (PEG) ratio is a figure that solves this problem. However, I’ve tried so screen the market by stocks that look cheap in terms of growth (a PEG ratio below one). In addition, the stocks should have a low debt to equity ratio (ratio below 0.3) and a dividend yield of more than five percent (high yields). Fourteen stocks fulfilled these criteria of which six have a double digit yield. Ten stocks have a buy or better recommendation.

STMicroelectronics (NYSE:STM) has a market capitalization of $6.34 billion. The company employs 53,300 people, generates revenues of $9,735.00 million and has a net income of $155.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,643.00 million. Because of these figures, the EBITDA margin is 16.88 percent (operating margin 3.74 percent and the net profit margin finally 1.59 percent).

Financial Analysis:The total debt representing 12.95 percent of the company’s assets and the total debt in relation to the equity amounts to 20.60 percent. Due to the financial situation, a return on equity of 8.56 percent was realized. Twelve trailing months earnings per share reached a value of $0.72. Last fiscal year, the company paid $0.40 in form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 9.89, P/S ratio 0.68 and P/B ratio 0.85. Dividend Yield: 5.49 percent. The beta ratio is 1.75.

Long-Term Stock History Chart Of STMicroelectronics N.V... (Click to enlarge)

Long-Term Dividends History of STMicroelectronics N.V... (STM) (Click to enlarge)

City Telecom (NASDAQ:CTEL) has a market capitalization of $510.35 million. The company employs 3,080 people, generates revenues of $216.86 million and has a net income of $40.49 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $75.95 million. Because of these figures, the EBITDA margin is 35.02 percent (operating margin 22.05 percent and the net profit margin finally 18.67 percent).

Financial Analysis:The total debt representing 0.05 percent of the company’s assets and the total debt in relation to the equity amounts to 0.07 percent. Due to the financial situation, a return on equity of 18.01 percent was realized. Twelve trailing months earnings per share reached a value of $1.02. Last fiscal year, the company paid $0.77 in form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 12.93, P/S ratio 2.35 and P/B ratio 2.20. Dividend Yield: 5.84 percent. The beta ratio is 1.80.

Long-Term Stock History Chart Of City Telecom (H.K.) Lt... (Click to enlarge)

Long-Term Dividends History of City Telecom (H.K.) Lt... (CTEL) (Click to enlarge)

Banco Santander (NYSE:STD) has a market capitalization of $74.75 billion. The company employs 193,349 people, generates revenues of $41,996.85 million and has a net income of $10,603.15 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $17,390.72 million. Because of these figures, the EBITDA margin is 41.41 percent (operating margin 26.10 percent and the net profit margin finally 19.02 percent).

Financial Analysis:The total debt representing 16.95 percent of the company’s assets and the total debt in relation to the equity amounts to 277.57 percent. Due to the financial situation, a return on equity of 9.30 percent was realized. Twelve trailing months earnings per share reached a value of $1.19. Last fiscal year, the company paid $0.84 in form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 7.05, P/S ratio 1.37 and P/B ratio 0.73. Dividend Yield: 10.26 percent. The beta ratio is 1.72.

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 15.68 and forward P/E ratio is 23.10. The dividend yield has a value of 5.05 percent. Price to book ratio is 1.12 and price to sales ratio 3.44. The operating margin amounts to 13.93 percent.

What is a Stock? Stocks (also called stock or share) are part of the capital stock of a company. It represents the original equity paid into the company. The capital stock could be traded at well-known stock markets like the New York Stock Exchange (NYSE) or NASDAQ.Every stock or share represents a partition ownership to the company. A stock owner has the ability to receive dividends and has a voting right for the annual general meeting (AGM). The stock owner participates on the business opportunities and risks.

There are two main stock types available: common stock and preferred stock. A common stock gives the shareowner the ability to vote at the annual general meeting and to receive dividends. A preferred stock has no voting right but for compensation, a higher claim for earnings and assets.

By Dividend Yield - Stock, Capital, Investment

What is a dividend? A dividend is a payment by the company to its shareholders. Normally, a stock pays 4 times a year a quarter dividend in order to participate investors at the company’s success. The amount of dividends in relation to the earnings of a company is called payout ratio. The figure measures the part of the earned money which is paid to the shareholders. A payout ratio of up to 50 percent (half of it's earnings) is a good figure. Sometimes it could be possible that companies can pay 90 percent of its net income due to its business model. Those businesses don’t need much money for growing.

The dividend amount in relation to the price that an investor pays is called the dividend yield. The value measures the return of the investor. A dividend yield of 5 percent (High-Yield) means that the investor receives 5 percent of his investment in cash - pretax within a year. This value is estimated for the full year dividends. Most of the highest yielding dividend stocks have only a big quarter dividend of more than one percent because of it's unsustainable dividends. The capital market expects a dividend dividend cut by the company.

An important date for investors is the ex-dividend date. This is the day on which the new investor doesn’t receive any dividend payments. He must wait 3 month for the next quarter dividend.

By Dividend Yield - Stock, Capital, Investment

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